Tree Service and Arborist Insurance

Here are some of the top factors that affect premiums during the underwriting process:

• Type of work you do. Your insurance rates depend on the unique risks of your specialty, such as tree pruning, stump removal, or pest control.
• Business property and equipment. It'll cost more to insure a large office or valuable equipment like stump grinders and bucket trucks.
• Number of employees. A larger workforce brings a higher risk of employee injuries and costly mistakes.
• Annual revenue. Increased business revenue is associated with higher risks and more frequent claims, which results in higher insurance costs.
• Location. Regional factors such as crime rates, population density, and property values can affect how much you pay for insurance.
• Policy limits and deductibles. You can save money by choosing lower limits or a higher deductible, but your insurance won't activate until you pay the full deductible.
• Claims history. It'll cost more to insure a tree service business that has filed an insurance claim in the past than one that has a clean history of claims.

In most states, obtaining a license as an arborist or contractor is mandatory for tree removal and tree service businesses. You may need to be bonded and insured or have a certain amount of experience or education to earn your license.

Being licensed, bonded, and insured shows your business is reliable and helps attract new clients. Some clients will only hire licensed contractors, or they'll ask for proof of general liability insurance or a bond before they'll sign a contract with your company.

Examples of state requirements for arborists include:

• Oregon: Businesses must have a license from the Oregon Landscape Contractors Board (LCB) or the Oregon Construction Contractors Board (CCB) in order to do tree work.
• Massachusetts: There are no licensing requirements for tree work companies and arborists in Massachusetts. However, becoming a Massachusetts Certified Arborist (MCA) can make your business stand out from the competition.
• California: Tree service businesses must obtain a Tree and Palm Contractor license from the Contractors State License Board (CSLB).

Similarly, you can earn certifications through the International Society of Arboriculture (ISA) and the Tree Care Industry Association (TCIA) that show clients your business is reputable.

If you work as a 1099 contractor or subcontractor, it's important to protect yourself with insurance—and you may need it to sign contracts or get licensed. That's true even if you only work part of the year.

Arborists and other tree care professionals can purchase short-term liability insurance to cover third-party accidents and demonstrate responsibility to clients. For instance, you could buy seasonal insurance if you only do spring tree trimming.

However, there are several reasons to opt for year-round tree service insurance coverage instead:

• It's expensive to stop and start coverage. Contractors who cancel their policies may see increased premiums or have difficulty restarting coverage, as it's a red flag for insurers.
• It may cost more in the long run. Going without insurance leaves you exposed to costly risks. For example, a storage unit could catch fire and destroy your tree trimming equipment during the off-season.
• Workers' comp is often required. Tree service technicians typically need workers' compensation to sign contracts and get licensed. 1099 contractors may choose to carry workers' comp to protect themselves against work-related medical bills, which health insurance may not cover.

Due to the increased risks of your profession—such as damage caused by falling branches, or the risk of being struck by a tree branch yourself—you'll either need your own insurance or the coverage provided by an additional insured endorsement on the project owner's policy.

Yes, stump grinding is a hazardous activity that may require coverage beyond that offered by standard insurance policies.

There are several types of coverage you may need to perform this work:

• General liability insurance: Standard general liability insurance may include exclusions for tree service work. You may need to buy specialized coverage for elevated tree work, stump grinding, and other high-risk activities.
• Commercial umbrella insurance: Because a stump grinding accident could result in a high-cost claim, you may need umbrella insurance to meet client requirements for higher limits or to ensure you're sufficiently protected.
• Workers' compensation insurance: Workers who perform stump grinding take on increased risk, which means clients and state laws are more likely to require workers' compensation coverage, even if you work alone.
• Inland marine insurance: As commercial property insurance only covers items kept at your main business location, you'll need inland marine insurance to protect stump grinders, lifts, and other tools and equipment that travel to jobsites. Equipment valued at over $2,500 may need to be scheduled separately on the policy.
• Trailer insurance: You'll also need specialized coverage for your trailer, typically added as an endorsement to commercial auto insurance.

Arborists, tree care businesses, and other landscaping businesses often invest in the following insurance products as part of a comprehensive risk management strategy:

• Professional liability insurance provides crucial protection against lawsuits alleging professional negligence, such as removal of the wrong tree or harmful advice provided by an arborist.
• Hired and non-owned auto (HNOA) insurance is recommended for tree service workers who drive their own vehicle to clients' properties, as personal auto insurance won't cover business use. HNOA provides liability coverage for personal, leased, and rented vehicles used by your business.
• Commercial property insurance covers your building and its contents, such as computers, furniture, and fixtures. It protects against financial losses from fires, storms, and burglaries.
• Business personal property (BPP) coverage can be added to your general liability policy to protect business property kept at a designated location, even if you don't have an office.
• Business interruption insurance, also called business income insurance, covers lost revenue and daily operating expenses if a burst pipe or other covered event forces your business to close temporarily.
• Contractors pollution liability insurance: Pollution insurance covers damage caused by runoff or improper application of pesticides, herbicides, and fertilizers. Contracts may include a requirement for this coverage, or a pesticide/herbicide applicator endorsement to cover exclusions in your general liability policy.

Our licensed agents can help you find the right coverage options for your tree service company, including specialized endorsements and bonds.